With user-friendly workflows and world-class security, you’ll find new ways to exceed client expectations. AI-powered document insights, client mobile app and unified client hub help firms work faster and better BURLINGTON, Mass., June 05, 2025 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced significant new enhancements to Progress® ShareFile®, its SaaS-native document-based collaboration and cli ...

BURLINGTON, Mass., June 04, 2025 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the Q2 2025 release of Progress® Telerik® and Progress® Kendo UI®, the most powerful .NET and JavaScript UI libraries for modern application development. This release introduces a number of groundbreaking AI capabilities that significantly accelerate development workflows, including AI Coding Assistants for Blazor and React, ...

Core Viewpoint - Progress Software (PRGS) is positioned well to continue its trend of beating earnings estimates in upcoming quarterly reports [1]. Group 1: Earnings Performance - Progress Software has a strong history of beating earnings estimates, with an average surprise of 17.94% over the last two quarters [2]. - In the most recent quarter, the company reported earnings of $1.31 per share, exceeding the expected $1.04 per share, resulting in a surprise of 25.96% [2]. - For the previous quarter, the consensus estimate was $1.21 per share, while the actual earnings were $1.33 per share, leading to a surprise of 9.92% [2]. Group 2: Earnings Estimates and Predictions - Estimates for Progress Software have been trending higher, influenced by its history of earnings surprises [5]. - The company currently has a positive Zacks Earnings ESP of +0.46%, indicating increased analyst optimism regarding its near-term earnings potential [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat [8]. Group 3: Importance of Earnings ESP - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]. - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the likelihood of successful investment decisions [10].

Core Insights - Progress has announced a deep integration of its ShareFile platform with Microsoft 365, enhancing document workflow and file sharing capabilities for enterprise teams [1][4] - The integration allows for real-time coauthoring in Microsoft Word, Excel, and PowerPoint, supporting larger file sizes up to 100MB for Word and Excel, and 2GB for PowerPoint, facilitating collaboration on complex documents [2][3] Group 1: Product Features - ShareFile now enables seamless, secure coauthoring across Office for the web, desktop, and mobile, aimed at streamlining complex workflows and improving productivity [1][3] - The platform is designed to enhance security and protect sensitive data while promoting collaboration among clients and teams [3] Group 2: Strategic Partnership - Progress is collaborating closely with Microsoft to innovate in cloud-based file management and enterprise collaboration, laying the groundwork for future enhancements to ShareFile [4] - The partnership aims to empower enterprises to enhance security, collaboration, and productivity across distributed teams [5] Group 3: Company Overview - Progress is a trusted provider of AI-powered digital experience and infrastructure software, serving over 4 million developers and technologists across hundreds of thousands of enterprises [6]

Core Insights - Progress Software's international operations are crucial for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter was $238.02 million, reflecting a year-over-year increase of 28.9% [4] International Revenue Breakdown - Latin America generated $5.05 million, accounting for 2.12% of total revenue, which was a decrease of 18.78% from the expected $6.22 million [5] - Europe, Middle East, and Africa contributed $66.94 million, making up 28.12% of total revenue, which was 9.63% lower than the consensus estimate of $74.08 million [6] - Asia Pacific contributed $11.37 million, representing 4.78% of total revenue, exceeding expectations by 12.73% [7] Future Revenue Projections - For the current fiscal quarter, total revenue is anticipated to be $237.85 million, a 35.9% increase year-over-year, with expected contributions of 2.1% from Latin America, 28.2% from Europe, Middle East, and Africa, and 4.8% from Asia Pacific [8] - For the full year, total revenue is projected to reach $965 million, up 28.1% from the previous year, with specific contributions from each region outlined [9] Conclusion on International Operations - The reliance on global markets presents both opportunities and challenges for Progress Software, making the analysis of international revenue trends essential for forecasting future performance [10] - Analysts closely monitor these trends to adjust earnings forecasts, which significantly influence stock prices [11]

Core Insights - Progress Software (PRGS) has launched AI-powered upgrades to its Sitefinity content management platform to enhance content creation and digital customer engagement [1][2] Product Developments - The new Sitefinity 15.3 release includes embedded Generative AI services for content summarization, message personalization, and tag generation [2] - AI-enhanced media search allows users to find visuals using natural language, and built-in Azure AI translation supports multilingual content management [2] - In-line AI-based content optimization and advanced BI system integration are now available, enabling organizations to streamline workflows and apply custom AI models for deeper insights [3] Financial Performance - PRGS reported annualized recurring revenues (ARR) of $836 million, a 48% increase year over year on a constant currency basis, driven by strong performance in ShareFile and core products [5] - Total revenues for the reported quarter reached $238 million, up 29% year over year, landing at the high end of guidance [5] Competitive Landscape - PRGS's AI strategy aligns with industry trends, outperforming peers like Oracle and Adobe, whose shares have declined 19.5% and 21.3% year to date, respectively [7][10] - Oracle has deepened its collaboration with NVIDIA to enhance AI deployment, while Adobe is enhancing AI accessibility through Microsoft 365 Copilot [8][9] Future Guidance - For Q2 2025, PRGS projects revenues between $235 million and $241 million, with a consensus estimate of $237.85 million, indicating a 35.85% year-over-year increase [11] - Non-GAAP earnings per share are expected to be between $1.28 and $1.34, with a consensus estimate of $1.31, reflecting a 20.18% year-over-year growth [12]

Core Insights - Progress has announced significant AI innovations in its Sitefinity content management platform, enhancing marketers' ability to create, manage, and optimize content efficiently [1][2][3] Group 1: AI Innovations - The new features include AI-powered media search, advanced translation capabilities, and intelligent content optimization, which streamline workflows and improve engagement in an AI-driven marketplace [2][8] - Sitefinity 15.3 introduces embedded AI services that allow users to summarize content, improve writing, personalize messages, and generate tag suggestions within the platform [8] Group 2: Market Position and Competitive Advantage - Loren Jarrett, EVP & GM of Digital Experience at Progress, emphasized that organizations not leveraging AI capabilities will face a competitive disadvantage [3] - Sitefinity is positioned as a leading solution for marketers, developers, and content teams, providing advanced tools to deliver superior digital experiences [3] Group 3: Product Features and Flexibility - Sitefinity is a modern, cloud-based, AI-powered enterprise-grade CMS, now supporting Next.js, which enhances flexibility, upgradeability, and extensibility for businesses [4] - The platform allows for enhanced integration with BI systems, enabling users to export marketing data for sophisticated analysis and application of custom AI models [8]

Core Insights - Progress Software is leveraging AI-powered infrastructure and business application development platforms to enhance data management for businesses [1] - The company has successfully integrated its $875 million acquisition of ShareFile, contributing to a rebound in stock performance after reaching a nine-month low [2][7] Financial Performance - Progress Software reported an earnings-per-share (EPS) of $1.31 for fiscal Q1 2025, exceeding consensus estimates by $0.25, with revenues increasing by 28.9% year-over-year to $238.02 million [2][3] - Annualized recurring revenue (ARR) grew by 48% year-over-year to $836 million, with the ShareFile acquisition adding approximately $250 million to ARR [3][7] - The company achieved an operating margin of 14%, with an adjusted operating margin of 39% [3] Guidance and Projections - For fiscal Q2, Progress Software provided an EPS guidance of $1.28 to $1.34, with a midpoint of $1.31, surpassing the consensus estimate of $1.17 [4] - Full-year fiscal 2025 EPS guidance is set between $5.25 and $5.37, with a midpoint of $5.31, compared to the consensus estimate of $5.06 [5] - Expected full-year revenues for 2025 are projected between $958 million and $970 million, with a midpoint of $964 million, aligning closely with analyst estimates [5] Acquisition Impact - The integration of ShareFile is on track for completion by September 2025, enhancing the company's ability to pursue future SaaS acquisitions [7] - The acquisition is expected to contribute nearly $250 million to total revenues for fiscal 2025, with high predictability and gross margins exceeding 80% [7] Valuation Metrics - Progress Software's net debt stands at $1.373 billion, with a debt-to-equity ratio of 3.48, although the company has made efforts to reduce debt by $30 million in fiscal Q1 [9] - The updated price-sales (P/S) ratio is 2.63, which is lower than competitors like Pegasystems and SS&C Technologies [11] - The forward price-earnings (P/E) ratio is 10.99, significantly lower than Pegasystems' 33.49 and SS&C's 13.9 [11]

Core Insights - Progress Software (PRGS) shares increased by 14.5% to close at $58.98 following strong first-quarter fiscal 2025 results, with non-GAAP earnings of $1.31 per share, surpassing estimates by 25.96% and showing a 4.8% year-over-year increase [1][2] Financial Performance - Non-GAAP revenues reached $238 million, exceeding consensus by 0.92% and reflecting a 29% year-over-year increase; on a constant currency basis, the growth was 30% [2] - Annualized Recurring Revenue (ARR) was reported at $836 million, up 48% year-over-year, driven by strong performance from ShareFile and other solutions, with a net retention rate above 100% [2] - Software license revenues decreased to $58.4 million, down 8.8% year-over-year, while maintenance and service revenues rose to $179.6 million, up 48.9% year-over-year [3] - Non-GAAP operating margin was reported at 39.3%, a contraction of 220 basis points year-over-year [4] Expense Management - Sales and marketing expenses increased by 40 basis points to 21.6% of revenues, while product development expenses rose by 50 basis points to 19.5% [3] - General and administrative expenses decreased by 80 basis points to 10.8% of revenues [4] Balance Sheet and Cash Flow - As of February 28, 2025, cash and cash equivalents were $124.2 million, up from $118.1 million as of November 30, 2024; total debt stood at $1.51 billion with a net debt position of $1.39 billion [5] - The company generated $73.2 million in adjusted free cash flow and allocated $30 million for debt repayment and $30 million for share repurchases [5][6] Future Outlook - For fiscal 2025, non-GAAP revenues are projected between $958 million and $970 million, with an expected non-GAAP operating margin of 38% [7] - Non-GAAP earnings per share are forecasted to be between $5.25 and $5.37, an increase from previous guidance [7] - For the second quarter of fiscal 2025, non-GAAP revenues are anticipated to be between $235 million and $241 million, with earnings per share expected between $1.28 and $1.34 [8]

Core Insights - Progress has introduced AI-powered features in its ShareFile platform to enhance efficiency, strengthen data security, and accelerate document collection by nearly 3.5 times [1][2][3] Company Overview - Progress is a provider of AI-powered digital experience and infrastructure software, enabling organizations to achieve transformational success [5] - The company serves over 4 million developers and technologists across hundreds of thousands of enterprises [5] Product Features - ShareFile utilizes AI to automate low-value, repetitive tasks, allowing teams to focus on building meaningful customer relationships [2][3] - The platform enables users to collect documents nearly 3.5 times faster and extract information from documents up to 96% faster [2] - New AI-powered benefits include document summarization, which allows users to quickly analyze lengthy documents, significantly improving productivity [3][6] Security Enhancements - The secure share recommender feature automates safer share settings, helping organizations standardize secure data practices and protect sensitive information [6] - The platform enhances document workflows by embedding AI deeply into business processes for lasting impact [3][6] Efficiency Improvements - Document request list generation uses Generative AI to create ready-to-send document request lists, reducing manual processes and increasing efficiency [6] - By automating tedious administrative tasks, ShareFile allows professionals to focus on high-value work that drives success [3][6]